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RENT CONTROL - In a landmark move, the Los Angeles City Council has voted to overhaul the city’s rent control system for the first time since 1985, capping annual rent hikes at 4%—a major shift aimed at stabilizing housing costs and preventing homelessness.
After more than two years of debate, 12 of the 15 councilmembers approved reforms that tie annual rent increases to 90% of the regional Consumer Price Index, ensuring that rent hikes will rise more slowly than inflation. The new formula also eliminates an additional 2% increase for landlords who cover utilities. A floor of 1% will apply in years of low inflation.
Councilmembers Bob Blumenfield and John Lee voted against the proposal, while Curren Price recused himself due to being a landlord.
“Extraordinary rent increases are driving people out of the city,” said Councilmember Nithya Raman, chair of the Housing and Homelessness Committee.
This update marks the most significant reform to L.A.’s Rent Stabilization Ordinance (RSO) in four decades. Until now, landlords were guaranteed rent increases of at least 3% annually—and in times of high inflation, could raise rents as much as 10%.
A Step Toward Housing Stability
Tenant advocates celebrated the vote as a long-overdue correction. According to the Inner City Law Center, rents in RSO units climbed nearly 35% between 2010 and 2020, while inflation rose just 23%. With more than half of Los Angeles renters considered “rent burdened,” even modest increases have pushed many toward eviction and homelessness.
“Today’s vote brings Los Angeles’s decades-old rent formula closer to the economic reality for tenants,” said Shane Henson, Public Policy Advocate at Inner City Law Center. “This outcome proves that when tenants, advocates, and community organizations unite, we can make real progress.”
Nearly two-thirds of L.A.’s residents live in rental housing, and the city’s rent control rules affect roughly 42% of all households. The reforms are expected to help thousands of tenants stay housed as L.A. faces a homelessness crisis that has left more than 43,000 people without shelter.
Landlord Opposition
Landlord groups, including the California Apartment Association, criticized the changes as “arbitrary,” arguing that rising insurance, maintenance, and property costs are squeezing smaller property owners.
“These changes will not create a single new home,” said CAA spokesperson Fred Sutton, “but they’ll make it even harder to build, making the housing crisis worse for everyone.”
Balancing Growth and Protection
The measure has also sparked tension between pro-development and tenant protection advocates. Councilmember John Lee warned that stricter rent caps could discourage investment in new housing:
“This sends the message, ‘Do not build here. Do not invest in Los Angeles.’”
However, housing advocates counter that controlling rents is essential to curbing homelessness. Councilmember Eunisses Hernandez noted, “We can’t house the number of people every year that are falling into homelessness—and a majority of that is because they can’t afford it.”
Next Steps
The reforms now head to the City Attorney’s Office to be formally drafted and will return to the council for final approval. If enacted, they would reshape rent control policy for more than 1.5 million renters and mark a historic victory for the Keep LA Housed Coalition and dozens of community partners.
“This win belongs to every Angeleno who spoke out, organized, and refused to give up on the belief that everyone deserves a stable home,” said Adam Murray, CEO of Inner City Law Center.
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